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An internet public consultation has been launched by the European Commission into a planned directive laying down clear rules on the transfer of a company’s registered office from one European Union (EU) country to another.
EU internal market Commissioner Frits Bolkestein, said: "I encourage all businesses, associations and lawyers with an interest in company law to respond.” The draft directive is designed to provide “legal certainty” over procedures allowing a company to register in a new Member State, while being removed from the register of its former national home. The directive would direct companies to adapt their structures and assets to meet the conditions required for the new registration, but would free them from having to liquidate themselves in their old home country and then create a new company in the new host state. The legislation should also say transferred companies would have to abide by employee decision-making participation.